A Key Performance Indicator (KPI) is a business metric that measures the performance & progress of
a business against its key objectives.
5 Reasons – Why you need KPIs
- To measure progress
- To make adjustments & stay on track
- To solve problems & tackle opportunities
- To analyse patterns overtime
- To monitor company’s health
The KPIs will differ on the organization. Whatever KPIs are selected, they must reflect the
organisations goals, they must be key to its success & they must be quantifiable (measurable). KPIs
are usually long-term considerations.
With KPI Dashboards,
- Targets can be set for each functions
- These targets can be compared with the actuals
- Targets further can be drilled down at employee level
Few examples of KPIs in different areas,
- A sales team might track new revenue
- A customer support team might measure the average on-hold time for customers
- A marketing group will look at the contribution of marketing generated sales leads
- Human resources will look at employee management
- Other areas of the business will look at the efficiency of processes